ACTG 324 Homework assignment 3: Intra-entity inventory sales Due date: See the announcement on the D2L Name: Note: This homework assignment accounts for 6 points. No point will be given when (1) it is incomplete, (2) it is past due, (3) no work is provided, or (4) most answer/work is incorrect. Points will be deducted if part of the answer/work provided is incorrect. Pride Inc. acquired 70% of Star Co. on January 1, 2021. The total annual excess amortization resulting from the acquisition was $37,000 per year. Pride sold inventory to Star in both years 2021 and 2022. Specifically, in 2021, Pride sold goods with a cost of $600,000 for $850,000 to Star, and Star still owned 18% of these goods at the end of 2021 (i.e., 18% of these goods remained unsold). In 2022, Pride sold goods with a cost of $790,000 for $1,00,000 to Star, and Star still owned 10% of these goods at the end of 2022 (i.e., 10% of these goods remained unsold). For 2022, the companies reported the following account balances: Pride Sales 4,700,000 Star 2,500,000 Cost of goods sold 3,400,000 1,800,000 Other income/expense Not given Net income Not given 700,000